Airbnb Inc (NASDAQ:ABNB) stock fell 2.01% (As on November 2, 11:51:53 AM UTC-4, Source: Google Finance) after the company provided weaker-than-expected guidance for the upcoming fiscal quarter but reported stronger-than-expected revenue, buoyed by currency tailwinds. Excluding that one-time benefit, the company reported quarterly net income of $1.61 billion, compared with $1.21 billion in the year-ago quarter. Total nights and experiences bookings came in at 113.2 million for the quarter, more than the 99.7 million it reported in the year-ago quarter and beating a StreetAccount consensus estimate of 112.9 million. Airbnb also reported adjusted EBITDA of $1.83 billion, growing 26% year over year, and free cash flow of $1.31 billion, or 37% more than the $958 million it reported in the year-ago period.
Furthermore, Cross-border nights book increased 17% in Q3 compared to a year ago. In Asia Pacific, the company’s business has fully recovered to pre-pandemic level. And we’re seeing significant growth in Asia Pacific markets such as Taiwan, Thailand and Indonesia, all experiencing year-over-year nights growth above 30% on an origin basis. the company has launched more than 350 new features and upgrades across the entire service. And in the past year alone, this has included things such as improved customer service, total price display and new tools to help host set more competitive prices. These upgrades are paying off for both guests and host.
Moreover, the company also provided updates on its efforts to lower the cost of Airbnb stays for consumers. “While prices are increasing industry-wide, the average nightly price of a one-bedroom listing on Airbnb in September was $120, only 1% higher than it was in the prior year period. The company also said it would be taking steps to enhance listing verifications later in the year in the U.S. and four other countries.
ABNB in the third quarter of FY 23 has reported the adjusted earnings per share of $6.63. That may not be comparable to the $2.10 expected by analysts, according to LSEG, formerly known as Refinitiv. The company had reported the adjusted revenue growth of 18 percent to $3.40 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $3.37 billion.
The company guided to $2.13 billion to $2.17 billion in fourth-quarter revenue, representing year-over-year growth ranging from 12% to 14%. That was less than the $2.18 billion that analysts polled by LSEG had been expecting.